Published On: Tue, May 2nd, 2017

Brent Crude Oil: general review

InstaForex

Current trend

The rate of Brent still fails to move away from a long fall caused by the remaining negative informational background in the oil market. The growth of world oil reserves and the increasing number of active oil rigs in the USA prevent oil prices from reversing to growth. Today the rate of Brent corrected from the support level of 51.20 and increased to the resistance level of 51.80. If the rate manages to consolidate above this level, growth may continue to the levels of 52.43, 53.00.

On Tuesday market players will pay attention to initial data from API on weekly changes of oil reserves in the USA (22:30, GMT+2). If the report shows the reduction of the reserves this may support Brent in the short term. Otherwise one may expect the rate to continue falling.

Support and resistance

Technical indicators don’t provide a clear signal. Bollinger Bands are directed downwards indicating the preservation of the decreasing tendency. MACD histogram is in the negative zone and its volumes are decreasing showing the continuation of the upward rate correction.

Support levels: 51.20, 50.05, 49.00.

Resistance levels: 52.02, 53.00, 54.00.

Trading tips

Buy positions may be opened above 52.02 with targets at 52.43, 53.00 and stop-loss at 51.72.

Sell positions may be opened below 51.20 with targets at 50.05 and stop-loss at 51.40.

Forex Analysis

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